a) The effective duration of Treasury
To Determine:
To determine the effective duration of the 4.75% Treasury due on 2036 and the total bond portfolio.
Introduction:
Bond is a financial instrument which is normally created for the purpose for raising a capital. In this the bond issuer raises the money for some projects in which an investor are loaning money to the bond issuer. There is an agreement happening between the issuer and the investor where there is a specific future date is mentioned on which the issuers are obligated to pay a specified amount of money.
b) VanHusen circumstances about the maturity structure of bond portfolio
To Determine:
To determine the circumstances where VanHusen remarks to Kapple about the maturity structure of the bond portfolio would be correct.
Introduction:
Bond is a financial instrument which is normally created for the purpose for raising a capital. In this the bond issuer raises the money for some projects in which an investor are loaning money to the bond issuer. There is an agreement happening between the issuer and the investor where there is a specific future date is mentioned on which the issuers are obligated to pay a specified amount of money.
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